In the early 80’s interest rates were in the the high teens. That is why defaults were so high. I believe interest rates for mortgages will be around 10% in a year. The weak dollar and strong Euro will force rates up. The US with its negative savings rate is dependent on foreign savers that will be going over seas unless rates go up. I believe in 18-24 months mortgage rates will be 12-15% for people with good credit. Foreclosure rates will be much higher than 1983. History does not repeat, it rhymes.